The 2021-2030 Socio-Economic Development Strategy is of profound importance to Vietnam’s rapid, sustainable development, leave the group of low middle-income countries by 2030, and realize its aspiration to become a prosperous country by 2045, when Vietnam will celebrate its 100^th National Day.

Towards an integrated, modern market mechanism

Building and fine-tuning a market economic mechanism and promoting economic restructuring are strategic, breakthrough tasks to drive Vietnam’s rapid, sustainable development in order to become an upper middle income country. Former Deputy Minister of Planning and Investment Cao Viet Sinh said Vietnam’s market economic institutions are insufficient and inconsistent: “First, we need to complete the shift to a modern market economy and strengthen international integration. Second, we need to ensure a market with full production activities which is the decisive factor in resource mobilization and allocation. Third, the State needs to delegate power and change its function to change the role and function of the market and the relation between the State and the economy. Fourth, the State needs to focus on building and fine-tuning the law-governed state, expand and exercise democracy, ensure the full exercise of human rights and citizen rights. It’s necessary to establish a national governance system without conflicts of interest, and ensure balance between power and oversight and the State’s accountability before the people and enterprises.”

Reform to overcome middle-income trap

Vietnam is now at a critical turning point where the government’s decisions on the scale and pace of innovation and reforms will strongly affect Vietnam’s attainment of its SDGs. Caitlin Wiesen, UNDP Chief Representative in Vietnam, said: “Here in Vietnam, priority should be given to stimulating innovation by technology application. This is measured by number of firms adopting technology and penetration measured by the scale and depth of technology application within firm. We need to critically and equally engage men and women, especially vulnerable people that are left behind. It’s vital to accelerate development through innovation. Second point is that promoting innovation must aim at increasing the participation of all actors and spreading the benefit of innovation equally. The third key point is that the role of the state is the key to both leading and shaping innovation. Government has played a key role on extending beyond investment institutions and building an equal system for innovation.”

Act for Vietnam’s prosperity

Vietnam is aiming to become an upper income industrialized country, create a full market economy that meets all criteria of a modern, internationally-integrated economy and has high productivity and competitiveness, ensure balance between economic growth and cultural and social development, promote social progress and equality, ensure social security, and protect the environment. These goals reflect Vietnam’s aspiration for an improved material life, a healthy society, democracy and equality, a high cultural level, and an effective and accountable State.

Bui Tat Thang, former Director of the Development Strategy Institute of the Ministry of Planning and Investment said: “First, Vietnam needs to improve the quality of the socialist-oriented market economy and improve relations between the State, the market, and society. Second, it’s important to strengthen economic restructuring to reshape the growth model. Third, we need to strengthen science and technology development and promote innovation to drive the new growth model. We also need to develop the infrastructure network and urban system and focus on human development and culture and society,  protecting the environment, using natural resources efficiently and coping with climate change.”

Recommendations by Vietnamese and foreign experts at the forum were praised by the Prime Minister as a valuable reference and orientation for Vietnam in finalizing its development strategy until 2030 and development plan until 2025.